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Warehouse Management Systems Wiki
Welcome to the Warehouse Management Systems Wiki A Warehouse Management System is a software application that is utilized to support various day-to-day operations within a warehouse. Whether it is used for inventory control, order fulfillment or shipping and receiving, having warehouse management systems are vital to improve the efficiency of a company's warehouse. The software allows for a centralized managements of all warehousing tasks that helps companies boost productivity, reduce costs, shorten order fulfillment times, increase customer satisfaction and deliver a faster return on investments. History The first warehouses were built to store grain to try and prevent famine in Egypt. As time went on, and transcontinental trade increased, warehouse management was created. Originally, warehouse management was a manual process. Everything was recorded and kept using pen and paper, which was extremely time consuming and inaccurate. As time wore on, there was a strong need to keep track of the movement and placement of inventory, especially with the importing and exporting of goods. With the surge of technological advances, warehouse management systems appeared on the market in the 1980's around the same time that real time data collection was made commercially affordable with the conjunction radio frequency technology and bar code scanning. Originally, the companies that supplied these technologies were primarily project focused and offered significant customized software. By the end of the 1990's, however, it was clear that warehouse management systems was going to be a fast growing market. Over 100 companies were competing for WMS market, and most of them had developed software solutions rather than creating project specific customization. Today, the market has emerged to the point where the traditional warehouse management system has become an important point solution wihtin an enterprise-wide suite of supply chain planning and execution applications. Over the years, some of the top warehouse management systems have expanded the scope of their product, offering to include a diverse range of supply chain applications, such as: demand planning, distributed order management, yard management, inbound/outbound transportation optimization, labor management, supply chain visibility, event management, slotting, and much more. Offering these applications has allowed for the classic WMS to move outside of the walls of the warehouse, and into the global supply chain market. Benefits of a Warehouse Management System • Receiving – Gain insights into shipments that have been delivered, but that are not yet at their final location. Make sure items at low stock levels are staged and put away first, reducing the impact of out-of-stocks and inefficient fulfillment processes. • Put-Away – Know the location of all inventory on your shelves. Route your workers to the right location, set up their picks in the proper order to minimize travel time, and increase the number of orders they can pick each day. • Picking – Improve error-proofing and productivity in the picking process. Workers receive their picks on a mobile device that routes them to the proper location. Scanning items when you pick them verifies that the right item at the right quantity is picked. • Packing – Ensure the accuracy of each order that is picked and reduce material costs by determining the right sized shipping carton. • Shipping – See that each order is properly packaged and shipped to the right destination and delivered on the right date. Problems Solved with a Warehouse Management System There are some problems that we can solve and avoid with a Warehouse Management System: • Delayed access to information in the system if has been entered days, or weeks late. • Inaccurate information in the system. • Mis-shipments. • Late invoices. • Difficulty locating items as they are moved within the warehouse. Why do we Really Need WMS? • WMS will reduce inventory • WMS will reduce labor costs • WMS will increase storage capacity • WMS will increase customer service • WMS will increase inventory accuracy Example of some companies If you're standing in the middle of a big retailer such as Wal-Mart, and you look around, you're witnessing one of history's greatest logistical triumphs. Retailers such as Target, Lowe's and Best Buy stock tens of thousands of items from all over the world. Wal-Mart alone stocks items made in more than 70 countries, according to its corporate Web site. At any given time, the Arkansas-based retailer manages an average of $32 billion in inventory, reports Supply Chain Digest. With those kinds of numbers, having an effective, efficient inventory control system, or inventory management system, is imperative. Wal-Mart's system helps it maintain its signature "everyday low prices" by telling store managers which products are selling and which are taking up shelf and warehouse space. Inventory management systems are the rule for such enterprises, but smaller businesses and vendors use them, too. The systems ensure customers always have enough of what they want and balance that goal against a retailer's financial need to maintain as little stock as possible. Mismanaged inventory means disappointed customers, too much cash tied up in warehouses and slower sales. Factors such as quicker production cycles, a proliferation of products, multi-national production contracts and the nature of the big-box store make them a necessity. Modern inventory management systems must have the ability to track sales and available inventory, communicate with suppliers in near real-time and receive and incorporate other data, such as seasonal demand. They also must be flexible, allowing for a merchant's intuition. And, they must tell a storeowner when it's time to reorder and how much to purchase. Category:Browse Category:Problems Solved with a Warehouse Management System Category:References